The announcement comes in the wake of the request made on March 2 by Cyprus Securities and Exchange Commission (CySEC), calling for “all issuers to assess the financial fallout, as well as any other risks and uncertainties the Ukraine crisis can have over their business/operations and file an immediate notification”.
In this context, Purcari specified that, in the wake of the assessment carried out by its executive team, the risk that the current war in Ukraine should expand to the Republic of Moldova is extremely low.
The company is not currently facing significant supply chain disruptions, and sales to Ukraine, Belarus and the Russian Federations account for less than 6% in overall sales of Purcari group in 2021.
Commercial liabilities related to clients located in Ukraine, Belarus and Russia amount to $988,000. The executive teams mulls setting up a $709,000 provision.
Purcari specified it has not been notified about significant cancelations of existent contracts.
Purcari manages around 1,350 hectares of vineyards and operates five production platforms in Romania and the Republic of Moldova. The group leads on Romania’s premium wine segments, with a share of around 25% and is the biggest wine exporter of Moldova, delivering to over 30 countries.
The group has been listed on the Bucharest Stock Exchange since February 2018. Its capitalization amounts to RON361 million and its shares has fallen by 40% since the start of the year, in the wake of deals worth above RON33 million.
(English version by Catalina Apostoiu)